Commercial Credit posts Rs 4.52 B PAT for FY 2021/22


Commercial Credit and Finance PLC reported a profit after tax of Rs. 4.52 B for the financial year ending 31 March 2022, a 93.6 per cent growth compared to the previous year. This growth was mainly fuelled by the 32.3 per cent increase in the net interest income, 67.5 per cent increase in the fee and commission income and the 82.4 per cent increase in the other operating income.

The Company’s asset base grew to Rs. 93.6 B from Rs. 91.1 B during the financial year ended 31 March 2022 recording a growth of 2.7 per cent. This was mainly caused by the growth in the net loan book which grew by 7.9 per cent during the period.    

The Company’s asset quality continued to improve finishing the year with a Gross Non Performing Accommodation (NPA) ratio of 4.67 per cent compared to the 5.39 per cent the previous year. The Company’s net NPA also improved to a negative 4.09 per cent from 1.46 per cent reflecting diligent provisioning.

The deposit and savings base of the company increased by 0.2 per cent during a challenging year for fund mobilisation, finishing with a deposit and savings base of Rs. 48.1B.

The significant increase in profitability while enjoying steady growth in the asset base saw the Company reporting a Return on Assets (ROA) of 4.9 per cent compared to 2.6 per cent the previous year. Return on Equity (ROE) also grew to 26.1 per cent compared to 15.6 per cent the previous year, providing value to its shareholders.

Both the core capital ratio and the total risk weighted capital ratio improved during the year to 17.6 per cent and 19.2 per cent respectively, compared to 13.5 per cent and 14.6 per cent reported during the previous year. Both ratios remained comfortably above the minimum regulatory requirement of 7 per cent and 11 per cent respectively indicating continued stability.

The country is facing an unprecedented economic crisis which is having a bearing on corporates and individuals representing all walks of life. In this bleak backdrop, the Company believes that its purpose and shared values will provide the Company with the much needed foresight and direction to rehabilitate and uplift lives to the best of the its capabilities. 

“As a Company which has grown together with people it is our duty to support our customers in these times of distress and help them overcome these predicaments. Our Company’s purpose and shared value will continue to guide us through these perilous waters,” said Rajiv Cassie Chitty, Director/COO, Commercial Credit

“We wish to express our heartfelt gratitude towards our value customers and shareholders for the continued trust placed in us. You have given us the strength to make our goals a reality and strive towards achieving exceptional heights,” he added.